Three reasons why HDB resale volume fell in February

OrangeTee, PropNex, and One Global Group reveal their observations.

Seasonal lull, rising interests, and attractive build-to-order exercise led to the decline of HDB resale volume in February 2023, according to property experts.

In a recent report, the 99.co and SRX data showed that HDB resale volume fell 28.2% MoM.

OrangeTee said the effect could be seasonal since resale volume usually declines MoM in previous years during February 2019 to 2022.

“Sales volume typically falls in February as the Chinese New Year holiday may have occurred during that month and February being the shortest month may have less deals recorded,” said OrangeTee.

PropNex research said demand was fairly stable but some buyers are still holding wait-and-see approaches due to market uncertainties and price resistance.

One Global Group said the decline can be attributed to the BTO launches in February as more homeowners are looking to apply for BTO flats such as those in Kallang/Whampoa and Queenstown. 

“Although the application rates for this BTO exercise were lower than those of previous exercises, the demand for BTO flats in mature estates remained high,” the firm said.

Uptick in first time buyer enquiries

Meanwhile, the recent increase in buyer enquiries may be due to this year’s budget, said PropNex.

The budget recently announced housing grants that made homeowners anticipate for 3- and 4-room resale flats.

Several analysts lauded the latest budget announcements even referring to it as generous and full of love.

The firm added that HDB resale prices remain relatively stable as many sellers are likely to hold on to their asking price in view of the high cost of replacement homes.

“Some flat owners who will be taking possession of their newly completed homes this year, may be willing to adjust their price expectations slightly, depending on demand for their flat,” it said.


OrangeTee sees that housing grants will be given to eligible first-timers who will buy resale flats so there will be more demand on the BTO market.

February 2023 BTO sales launch have already seen a steep fall in the number of applicants, and some of those who didn't apply for the February’s BTO may opt for resale flats.

“Demand may rise more significantly in the second half of this year when the penalty for non-selection of BTO flats kicks in. Those who fail to select a flat or have their first-timer privileges suspended will likely opt for a resale flat. ply for February's BTO may be considering resale flats,” said OrangeTee.

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